Trump Threatens 25 % Tariff on iPhones and 50 % Levy on All EU Imports

Donald Trump has jolted markets again, vowing a 25 percent tariff on every iPhone not assembled on US soil and a blanket 50 percent levy on goods from the European Union starting 1 June. He framed the move as punishment for what he calls “unfair EU trade barriers” and a nudge for Apple to shift production stateside, even though importers—and ultimately consumers—would foot the bill. Economists warn the dual strike could tack roughly $200 onto the base-model iPhone 16 and send prices of EU pharmaceuticals, cars, wine, and luxury goods soaring overnight.

The threat arrives as Moody’s downgrades US credit and investors reel from weeks of tariff whiplash that has already pushed Chinese import duties to triple-digits. A 50 percent duty on Europe would be the most sweeping in modern US history, covering everything from precision medical devices to coffee and cosmetics. Futures tumbled on the news, underscoring fears that an escalating trade war could erode the dollar’s safe-haven status and tip the economy toward recession.

Legal Experts question whether a president can single out a single company with product-specific duties, but Trump has repeatedly used emergency trade powers to test the limits. Apple, which generated 44 percent of its 2024 revenue in the US, has given no sign it can relocate complex supply chains at the speed Trump demands. Meanwhile, retailers from Walmart to Nike—already grappling with higher input costs—warn that another tariff wave will hit household budgets just as borrowing costs climb and consumer confidence wobbles.